The Enforcement Directorate has attached assets worth ₹144.40 crore of the then director and some junior functionaries of the Insurance Medical Scheme (IMS) and others for allegedly causing a loss of ₹211 crore to the exchequer.
The properties of some medicine suppliers and family members of the accused IMS officials have also been attached under the Prevention of Money Laundering Act.
The ED probe is based on eight FIRs registered by the Telangana Anti-Corruption Branch in Hyderabad, against the IMS officials and others for alleged violations in tendering process and misappropriation of government funds.
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It is alleged that the then IMS director, Devika Rani, conspired with the joint director and other staff and violated all the norms and procedures to issue purchase orders to firms mostly belonging to a supplier named K. Srihari Babu and also “benami” entities set up by her, P. Rajeshwar Reddy and others.
The agency said medical items were bought at inflated prices. Indents of dispensaries were falsified and stock registers fabricated. IMS joint director, K. Padma, was found to be diverting medicines and supplies.
Dr. Rani and a pharmacist named Nagalaxmi entered into a conspiracy with PMJ Jewellers and regularly channelled the funds and bought jewellery worth about ₹6.28 crore. They made cash advances to acquire prime real estate.
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The ED has till now identified and attached 131 immovable assets in Telangana, Andhra Pradesh, Bengaluru and Noida, besides movable assets in the form of securities and fixed deposits.